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What is the correct way to play this rule?

The rule states that if you attack a UNIT with a wound characteristic of 5 or more you can add +1 to all hit rolls.

Some people seem to play it that Liberators only gain the +1 to hit if a MODEL has 5 or more wounds. However, others play it that If a Liberator attacks a UNIT with 5 or more wounds you gain the +1 to hit.

I tend to think the second interpretation is correct since the word model is never mentioned in the rule. I am not sure what others think.

The Warscrolls: http://www.games-workshop.com/resources/PDF/AoS_Warscrolls/warhammer-aos-liberators-en.pdf

It says characteristic. That means the model itself has to have a wound characteristic above 5, exactly like it says. Or a unit of models whom all have a wound characteristic of 5 or higher.

Anyone using it against units that collectively contain at least 5 wounds on the models within it is playing it wrong.

Agreed with AncientSkarbrand.

Agreed too. Important to note that even lone heroes are units, so by wording it like this it works on both single models with a profile of 5 wounds, AND on units where the models in the unit have 5 or more wounds each on their profile.

Just posting to add a +1 to what everyone has said so far.

AncientSkarbrand wrote:
It says characteristic. That means the model itself has to have a wound characteristic above 5, exactly like it says. Or a unit of models whom all have a wound characteristic of 5 or higher.

Anyone using it against units that collectively contain at least 5 wounds on the models within it is playing it wrong.

+1

I'd add a +1, but your wound characteristic isn't high enough.

"Characteristic" is a number on your warscroll (the left one in the characteristic circle, in this case), remember all model(s) in a unit have the same warscroll.